Louisville finalizes market study proposal for future of blighted Sam's Club site

Study to examine current regulations, market trends that may be limiting redevelopment

By Anthony Hahn

Staff Writer

Posted:
05/15/2018 10:07:48 PM MDT

Updated:
05/15/2018 10:08:08 PM MDT

The former Sam's Club site in Louisville will be studied to determine its potential for new retail and commercial development, as well as "supportive uses that could foster new investment and development," (Matthew Jonas / Staff Photographer)

A proposal asking for prospective real estate consultants to asses how local regulations and market trends may be curbing redevelopment opportunities at Louisville's dormant Sam's Club site will go online Wednesday.

So says Louisville's City Council, which on Tuesday sanctioned the particulars of the request for proposal that officials hope will yield a new direction for the blighted $10 million property, located at 550 S. McCaslin Blvd.

Among some of the guiding principals, the RFP dictates that consultants examine the "rules and regulations," such as zoning codes, that may be limiting the property's potential.

Officials on Tuesday made a note of amending the plans to steer consultants away from recommending residential uses for the property — a potentially lucrative piece of development that residents and past boards have shied away from installing on the commercial-heavy corridor.

Consultants are scheduled to send their proposals to the city early next month, and the study would begin in July. Final results and recommendations would return for council consideration in October.

Another of the guiding principals of the RFP calls for consultants to "evaluate various development scenarios that meet market potential and satisfy positive fiscal benefits for the city."

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Officials amended some of the language to ask consultants that they look for new development that would exceed the current and historical profits from the property and overall corridor. Officials note that the city has liked lost roughly $3 million to $4 million in sales tax revenue over the last decade with the property sitting dormant.

At least one or two City Council members will sit on the review team with staff when consultant responses are received, according to the RFP, though it's unclear who will be appointed.

"Our sales tax base is dependent on this corridor," Mayor Pro-Tem Jeff Lipton said Tuesday of the suggestion that the city not meddle in the private property's natural trajectory. "Sitting here for the next three years without anything going on is unacceptable to me and my constituents. I don't want to signal to the business community that we are unable to do anything positive to try to get something done in this area."

Another goal of the study is to "understand and incorporate the property owner's, tenant's and public's input into development and redevelopment options for the area."

The current property owners, Centennial Valley Investments LLC and Seminole Land Holdings LLC, are likely content with holding out for an offer on the property; they have declined to comment on several stories regarding the future redevelopment of the site.

Councilman Jay Keany addressed that on Tuesday, suggesting that the property owners' lack of action or participation in any of the talks in recent months signals a similar lack of interest on their part to transform the site.

He also suggested that whatever recommendations come from the study, it is ultimately dependent on the private property owners to act.

"If you want real action on this," he said, "perhaps we need to condemn the property and level it."

Keany added that an option could be to "condemn the property, remove the covenants and pay the going market rate for it and start over."

Centennial Valley and Seminole purchased the site in 2014 for $3.65 million. The property is now listed for $9.95 million.

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